WHY PNG NEEDS IN­DE­PEN­DENT POWER PRO­DUC­ERS

Business Advantage Papua New Guinea - - Infrastructure & Transport -

> To­tal in­stalled ca­pac­ity in PNG right now is around 500 MW, yet av­er­age peak de­mands for power in PNG are sched­uled to grow to over 1500 MW by 2030, as pre­sented in the Gov­ern­ment’s Strate­gic Devel­op­ment Plan 2010-2030.

> Yet, PNG Power is strug­gling even to meet the cur­rent needs of power users, in a coun­try where only 13% of the pop­u­la­tion has ac­cess to mains power.

> This is in spite of PNG Power in­vest­ing K692 mil­lion (US$313 mil­lion) over the past five years and hav­ing a K476 mil­lion (US$215 mil­lion) debt fa­cil­ity for fur­ther in­vest­ment.

> Power sup­plies in PNG are suf­fi­ciently un­re­li­able for ev­ery busi­ness of any size to need its own power gen­er­a­tion ca­pa­bil­ity. In­deed, many ma­jor min­eral and agribusi­ness projects ex­ist com­pletely off-grid.

> Un­der cur­rent reg­u­la­tions, PNG Power has the ex­clu­sive right to sell elec­tric­ity within 10 km of 25 des­ig­nated cen­tres na­tion­wide, leav­ing space for a pri­vate en­ergy sec­tor to de­velop be­yond th­ese pop­u­la­tion ar­eas.

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